Bitcoin was trading higher Wednesday morning, helping to lead a stabilization in the crypto market.
Bitcoin was trimming recent losses and trading above $37,000.
Ether, the second biggest cryptocurrency by market capitalization, was trading around the $2,400 level.
Heading into Wednesday’s trading Bitcoin was down in six of the past seven days and traded off more than 20% month-to-date.
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The International Monetary Fund has come out against El Salvador’s use of bitcoin as a legal tender, according to the Associated Press.
The global lender’s board “urged the authorities to narrow the scope of the Bitcoin law by removing Bitcoin’s legal tender status,” the IMF said in a statement Tuesday.
“The adoption of a cryptocurrency as a legal tender, however, entails large risks for financial and market integrity, financial stability and consumer protection,” the IMF statement said.
President Nayib Bukele led the push to adopt Bitcoin as a legal tender alongside the US dollar.
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The bitcoin law went into effect in September.
After nearly doubling in value late last year, Bitcoin has plunged and on Tuesday was slightly below where it was voted when the congress June 9.
Bukele promoted the adoption as a way for thousand of Salvadorans to avoid money transfer fees when relatives living outside the country sent home remittances.
El Salvador’s law called for all businesses — with the technological ability — to accept Bitcoin as payment.
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The rollout was glitchy, but seems to have smoothed out.
Bukele’s office said it did not immediately have a comment on the IMF’s statement.